Global Processing

Indonesian Pulp and Paper company Signs Forest CO2 Deal

October 4, 2010

Indonesian pulp and paper firm Asia Pulp and Paper (APP) has signed a deal to protect a large area of forest in return for carbon offset revenue, according to Reuters. The deal with APP and Singapore-based Carbon Conservation is to set aside 15,640 hectares (38,650 acres) of peat forest in a 33-year pilot project aimed at encouraging plantation firms to become greener. The land on the Kampar Peninsula on Indonesia''s Sumatra island had been earmarked for clearing by concession holder PT Putra Riau Perkasa, a supplier to APP, but the two firms have agreed to work with authorities to preserve the forest instead.